Brussels, 05/04/2016 (Agence Europe) - During the visit of Indonesia's Minister for Trade Thomas T. Lembourg to Brussels on Monday 4 April, he and European Commissioner for Trade Cecilia Malmström discussed the scope of the future free trade agreement that the EU and Indonesia are preparing to negotiate.
“I'm very happy with the progress that we have been able to make so far towards a free trade deal with Indonesia. These constructive discussions have confirmed that Indonesia is making free trade with the EU a priority. Some work still remains to be done, and we are making progress in our efforts to solve outstanding issues”, Malmström stated at the end of their meeting.
Along with the Philippines, Indonesia is one of the EU's partners in the Association of Southeast Asian Nations (ASEAN) with which the Commission has proposed opening free trade negotiations, following on from agreements concluded with Singapore and Vietnam, and following on from ongoing negotiations with Burma/Myanmar (investment agreement) or negotiations on hold with Malaysia and Thailand (free trade agreements). The EU and the Philippines started their free trade negotiations at the end of 2015 (see EUROPE 11459).
“Indonesia offers a large market with much untapped potential. It is the largest economy in South-East Asia, representing 40% of GDP and the population of the Association of South-Asian Nations (ASEAN) but it ranks only at fourth place inside the region when it comes to trade with the EU” the Commission said on Monday.
EU-Indonesia bilateral trade in goods stood at €23.9 billion in 2014 (including €9.5 billion in exports for the EU and €14.4 billion in exports for Indonesia, in other words a deficit of -€4.5 billion for the EU). EU exports to Indonesia largely comprised manufactured products (84.3% of the total), mainly machines and transport material (56.8%). Indonesia's exports to the EU comprised 43.3% primary products, mainly agricultural products (36.2%) and 56.3% manufactured products.
Bilateral trade in services stood at €5.6 billion in 2013 (including €3.7 billion in exports for the EU and €1.9 billion in exports for Indonesia, in other words a surplus of +€1.8 billion for the EU). The EU's outgoing foreign direct investment (FDI) stocks to Indonesia stood at €22.8 billion in 2013.
Bilateral relations between the EU and Indonesia are now governed by a partnership and cooperation agreement that entered into force on 1 May 2014. (Original version in French by Emmanuel Hagry)